Problem:
During our CRP, users received “FRM-40735: ON-ERROR trigger raised unhandled exception ORA-01001″ and have to login again.
This typically happens when running queries in EBS core forms 10.1.2.3 with the profile “FND: Enable Cancel Query” set to “Yes” in order to enable the cancel query functionality. If the “Cancel Query” window is displayed and the user tries to cancel the query, the following error message is displayed:

Solution:
After working with Oracle support, analyst suggested to apply the patch 9357219 that lead to the problem resolution.
Ofcourse, after applying the patch on forsms 10.1.2.3 home, relink the forms via
make -f ins_forms.mk install